Japanese wages rose in July by the most since 1997, helping consumers cope with increasing living costs as Prime Minister Shinzo Abe tries to reflate the world’s third-biggest economy.
Average monthly earnings climbed 2.6 percent from a year earlier after a 1 percent gain in June, the labor ministry said in Tokyo today. Adjusted for inflation, pay shrank 1.4 percent, the 13th straight month of declines.
The boost in incomes marks progress in Abe’s bid to lay a foundation for sustained economic recovery. At the same time, a failure of wage growth to keep up with inflation is squeezing households and crimping spending.
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